Myomo secures $3M term loan, amends credit line

Published 20/02/2025, 12:34
Updated 20/02/2025, 12:36
Myomo secures $3M term loan, amends credit line

Boston-based Myomo Inc . (NYSE American: NYSE:MYO), a manufacturer of orthopedic and prosthetic devices with a market capitalization of $200.3 million, has entered into a material definitive agreement with Silicon Valley Bank, securing a new term loan facility of up to $3 million, according to a recent 8-K filing with the Securities and Exchange Commission.

The agreement, effective Monday, provides Myomo until February 28, 2026, to access the funds. InvestingPro data shows the company maintains a healthy current ratio of 2.1, indicating strong short-term liquidity.

The term loan advances, which commence repayment on March 1, 2026, will be repaid in 36 equal monthly installments, with the full balance due by February 1, 2029. The interest rate on these advances is set at the higher of 5.0% or the prime rate published in the Wall Street Journal minus 1.0%.

Myomo retains the option to prepay the loan with a prepayment premium ranging from 1.0% to 3.0%, and a 2.50% end-of-term charge on any prepaid or repaid principal amount. According to InvestingPro, the company operates with a moderate debt level, suggesting prudent financial management.

In addition to the term loan, the amendment also modifies Myomo’s existing revolving line of credit. Changes include an increased limit for Medicare receivables eligible under the loan agreement and an expanded permitted balance for the company’s German subsidiary.

The news of the loan comes as Myomo continues to expand its reach within the orthopedic, prosthetic, and surgical appliances sector. The financial flexibility provided by the term loan and credit line amendment could support the company’s operational and strategic initiatives.

This financial agreement is detailed in the full text of the amendment filed with the SEC, which investors and interested parties can refer to for more comprehensive information.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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